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StaffKnex SRM

StaffKnex SRMStaff Response Management

Web-based staff management and communication service for Healthcare

Schedule • Manage • Communicate • Analyze

Analytics

Scheduling

CommunicationMark Woodka, CEOmwoodka@staffknex.comwww.staffknex.com

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Problem: Labor is 70% of LTC costsProblem: Labor is 70% of LTC costs

Problem: Controlling Labor Costs in Healthcare

• Not managing staff to census ratios leads to overstaffing

• Overtime cannot be managed in “real-time”

• Call-offs exacerbate the overtime problem and reduce quality of care

• Got to the same people over and over

• Staffing agencies are expensive

• Reduce quality of care due to non productive time spent replacing absent staff

The Economics – 136 Bed LTC Costs

Item Monthly Hours Annual Cost

RN Overtime 160 Hours $115,000

Aide Overtime 96 Hours $15,500

Labor over HPPD

Varies $200,000

Calls Offs 56 $23,500

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The StaffKnex Solution - Scheduling

• Integrated staff scheduling and census data• Daily view of labor hours over/under based on

resident census and budget by position• Link directly to the schedule to adjust HPPD• Automatically communicate cancelled shifts

• Real-time overtime management• Project overtime as scheduling changes occur

• Prevent assignment of staff to overtime without supervisor approval

• Utilize text messaging for overtime approval

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The StaffKnex Solution – Call Off Resolution

• Integrate scheduling software and communications technology to eliminate calls

• Reach the right people immediately by combining:

Text messaging

Email

Voice Response System

• Intelligent Response Management & Analytics

• Responses are captured and filtered

• Analytics for improved staff management

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The Economics – 136 Bed LTC ROI

• Reduce Overtime 25%

• Eliminate 3 – 5 shifts per week by managing HPPD

• Reduce labor resolving calls offs 90%

Category Savings

Call Offs $21,000

HPPD $45,000

OT $28,000

Total $94,000

LTC Savings

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Addressable Market Segments

Segment Employees

Medical 6,700,000Food Service 13,100,000Staffing 2,800,000Hospitality 1,800,000Manufacturing 13,100,000

Total 37,400,000

• $5 – StaffKnex Fee per employee per month

• $2.2B – Market size

• $44m – StaffKnex revenue at a 2% share

Market for StaffKnex:

• Any business with a shift-based workforce

• Having a high volume of staffing emergencies

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StaffKnex Business Model

• StaffKnex is a Software as a Service (SaaS) Provider• Nothing for customers to install• Incremental infrastructure costs are minimal

• Pricing is per employee per month• $5 per employee per month average• Gross margins at scale are very high

• StaffKnex deploys quickly• Little to no training or setup required

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StaffKnex Current Status

• Product is complete, strategy is to execute

– Communication service launched in April

– Scheduling service launched in August

• 7 live customers

– 2 beta customers

– 5 paying customers

• Pipeline – 10 qualified opportunities

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Leadership Team

Mark Woodka, CEO• Flashline – Vice President Sales, 2001 – 2008• TMW Systems – SVP Sales, Marketing and Business Development

1993-2001• PSI – President and Founder 1986 - 1993

Gene Groys, Co-Founder and President• American Greetings – Director of Mobile Services 2006-2007• Lava storm – VP Product Management 2005-2006• Oracle (Siebel) - Product vision and leadership 2000-2005• Mobile technology leader, speaker

Matt Wilson, Co-founder and Chief Engineer• American Greetings – mobile technology leader 2005-2007• Published open-source innovator

StaffKnex Five Year Projections

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2008 2009 2010 2011 2012

Revenues          

Installation $ 49,500 $ 514,830 $ 1,072,750 $ 1,072,750 $ 750,925

Subscription $ 42,813 $ 1,950,025 $ 5,780,520 $ 14,133,371 $ 29,892,081

Upgrade $ 2,150 $ 167,448 $ 1,511,528 $ 4,534,584 $ 5,668,230

Total Revenue $ 94,463 $ 2,632,303 $ 8,364,798 $ 19,740,705 $ 36,311,236

         

Expenses          

Commissions $ 13,845 $ 526,461 $ 2,509,439 $ 5,922,212 $ 10,893,371

Staff $ 377,366 $ 1,407,255 $ 2,478,000 $ 6,083,490 $ 8,547,541

Office $ 60,695 $ 171,470 $ 217,477 $ 678,900 $ 1,052,295

Operations $ 8,354 $ 78,347 $ 243,488 $ 406,566 $ 614,588

Marketing $ 34,000 $ 350,000 $ 865,000 $ 1,500,000 $ 3,500,000

Total Expenses $ 494,260 $ 2,533,533 $ 6,313,404 $ 14,591,168 $ 24,607,795

         

Operating Margin $ (399,797) $ 98,770 $ 2,051,394 $ 5,149,538 $ 11,703,441

-423% 4% 25% 26% 32%

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Funding Needs

BSKlive seeking $750,000 - $1,000,000 (Target Close 12/31/08)– Jumpstart $350,000 – approved for investment– NCAF – approved for investment– Side car investments available ($20,000 minimum)– Pre money valuation of $2m– Approved for OH TITC

Use of Funds– Business development, marketing, 1 developer– Investments will be tied to milestones

Growth Projection– Aggressive growth for next 12 months in healthcare– Achieve $90k-100k monthly revenue Q3-Q4 2009– Q4 2009 – Venture round to stimulate growth

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Exit Strategy

• BSKlive is a compelling acquisition in several categories:

– Legacy HR application providers. Value added service and easily integrates to existing HR applications. Compelling “buy” strategy to gain SaaS business model

– Workforce management. Systems providers such as Kronos, ADP, etc. would utilize StaffKnex as a product extension and to drive incremental revenue.

– Communications providers. Businesses currently in communication space which service medical facilities (pagers, etc.) are looking for ways to add incremental revenue and differentiation

• High company valuation due to:

– SaaS business model. Low customer acquisition costs at high margins.

– Market size. Initial launch in healthcare with overall market for the StaffKnex service >$2.2B.

– Uniqueness of the offering. Integrated scheduling, profiling and automated communication provides unique and compelling capability.

Next Steps

• Side car investor meeting Friday 12/19, 8am North Coast Angel Fund

5875 Landerbrook Drive, Suite 300

Mayfield Heights, OH  44124

Phone/Fax (800) 975-5846

www.northcoastangelfund.com

• OH TITC forms due Monday– I have a few with me

• Business plan executive summary available in the back

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Q & A

The The SStafftaffKKnexnex Application Application

Alert & Response Staff Analytics

Communication Scheduling

Contact: Mark Woodka, CEOBSKlive, Inc.216-272-9434 mwoodka@staffknex.comwww.staffknex.com

Thank you!